You got it. If you are paying 40% in taxes (not uncommon here in Maryland where we have 7.5% state income tax), you end up spending $1 to save $0.40. So, yes, your investment in gadgets and stuff for the biz is a deduction (from income), but not a dollar for dollar reduction of income tax. I cringe when I hear other CPAs telling people to buy a larger house to save money on taxes! Or donating a car just to save on taxes!